JOHANNESBURG — South Africa’s Deputy Minister of Mineral Resources and Energy, Dr. Nobuhle Nkabane, has highlighted the potential for a breakthrough in the development of the upstream petroleum industry to significantly elevate the country’s economy. This statement was made during the inaugural Energy Conference hosted by the South African National Energy Development Institute (SANEDI) in Johannesburg.

According to South African Government News Agency, the recent parliamentary approval of the Upstream Petroleum Resources Development (UPRD) Bill, which aims to distinguish petroleum provisions from mineral provisions and address key issues in the upstream petroleum sector, is a significant step. This development aligns with the department’s view that such a breakthrough in the petroleum industry can propel the South African economy to greater heights.

The Deputy Minister referenced a report by the African Energy Chamber predicting an increase in gas demand that will surpass supply, presenting South Africa with a lucrative opportunity to enter this market. The approval of the UPRD Bill, she noted, is a major move towards the development of South Africa’s Upstream Petroleum Industry, positioning the country to become a significant player in the production and supply of oil and gas.

Dr. Nkabane emphasized the critical timing for South Africa to invest in exploring and exploiting its natural resources, including oil and gas. She addressed the conference delegates, acknowledging that in facing South Africa’s challenges of poverty, unemployment, and inequality, the country requires a diverse range of energy technologies for rapid and inclusive economic growth.

The Deputy Minister also spoke about the transition to a low-carbon future, recognizing the global reliance on fossil fuels, which currently account for 82% of energy sources. She stressed the importance of managing this transition effectively, considering South Africa’s rich endowment with fossil fuels.

Dr. Nkabane highlighted the National Development Plan 2030, which calls for the government to implement a mix of energy sources to diversify South Africa’s energy mix and meet the growing electricity demand. The Integrated Resource Plan (IRP) 2019 outlines a diversified energy mix, including Solar PV, Wind, Coal, Nuclear, Gas, Hydro, and Battery Storage. This mix is crucial for ensuring a reliable energy supply, eradicating energy poverty, and supporting the country’s industrialization goals.